JAKARTA (Scrap Monster): These two Japan based steel titans are investing a total sum of 450 million dollars for the establishment of peculiar steel factories. NSSMC is planning to join with Krakatau Steels, Indonesia's largest steelmaker, to produce automotive flat steel in Indonesia, whereas,Mitsubishi Steel is preparing to leverage a 34% venture in Jatim Steel Manufacturing, one of Indonesia’s largest long steel producer.
The joint speculation brought up by Krakatau Steel and NSSMC will give birth to a new and distinct joint venture in which 80% of shares is held by NSSMC and is to be known as, ‘Krakatau Nippon Steel Sumikin’. The new plant is expected to produce flat steel, and may require investments up to 300 million US dollars. NSSMC is planning to fund 133 million US dollars in addition to the 300 million dollars. The factory will be built in Cilegon and is expected to provide employment facility for 280 individuals. The main effort of the plant will be to manufacture hot dip galvanized steel and annealed, cold rod steel which may provide to the automotive steel sector of Indonesia. The production is anticipated to start in 2017.
As for Jatim Steel Manufacturing 34% stake from Mistubishi steel will most definitely bring out a raise in the production capacity. The company expects to raise the production of 120 thousand tons per year to 170 thousand tons per year.